News

Mis-selling claims cost RBS another £100m

ROYAL Bank of Scotland will reveal this week that it has set aside another
£100m to cover the cost of mis-selling payment protection insurance. The
additional bill would bring the taxpayer-backed bank’s costs from the
scandal to more than £1.3 billion — and push the total cost across Britain’s
banks to more than £8 billion.

Millions of British consumers have claimed that they were wrongfully sold
insurance to cover loan payments if they fell ill or lost their job. A case
brought to the High Court by the Office of Fair Trading is turning into the
most costly legal challenge ever for Britain’s banks.

An industry has sprung up around filing claims for consumers. Banks insist
that many of the mis-selling complaints now being brought are bogus. Lloyds
Banking Group said last week that one in three of the claims it now receives
are from people who have never had an